1. CO 2 Capture and Storage: ONGC’s Perspective and Plan Workshop on CCS January 23,2008 CO 2 Capture and Storage: ONGC’s Perspective and Plan Workshop on CCS January 23,2008 A B Chakraborty A B Chakraborty ONGC New Delhi ONGC New Delhi

2. Contents CCS and global concerns CCS– its relevance and inevitability Scope in up/mid stream oil and gas sector Processes involved Monitoring and safety aspects ONGC and CCS projects CCS– Indian prognosis

3. Global concerns: Is CCS worth an endeavour? Divided verdict– Developed vs developing debate Divided verdict– Developed vs developing debate Too costly Too costly Insignificant short term return Insignificant short term return Zero incentive-- UNFCCC’s reluctance Zero incentive-- UNFCCC’s reluctance Long term efficacy Long term efficacy Leakage potential Leakage potential Safety Safety

4. Global Initiatives: Can CCS be made worth the endeavour? Extensive R&D for establishing long term efficacy Extensive R&D for establishing long term efficacy Rigorous monitoring of established projects Rigorous monitoring of established projects Benefits through EOR Benefits through EOR Supplement with incentives (recognition by UNFCCC) Supplement with incentives (recognition by UNFCCC) Making mandatory by law Making mandatory by law

5. CCS– Is it relevant and important? Relevant and important if Relevant and important if  Fossil fuel remains the major source of energy; because  Only known process for long term mitigation  Only known process for large scale mitigation at one go  Only known process without possibility of manifestation of CO 2 at some other time and place. Irrelevant and unimportant if Irrelevant and unimportant if  Fossil fuel ceases to be the major source of energy We are to decide.

6. CCS projects-- Prerequisites Assured Source Assured Source Technique to capture CO 2 Technique to capture CO 2 Availability of a sink Availability of a sink Technique to transport CO 2 from source to sink Technique to transport CO 2 from source to sink Availability of effective monitoring system Availability of effective monitoring system

7. CCS– Scope in up/mid stream O&G sector PrerequisitesPossibility Reason/ Special case, if any Reason/ Special case, if any SourcePoor Except if there is a sour gas source Capturing technique Good Amine capture is a common technique SinkAssured All depleted reservoirs Transport’n technique Good Transportation is one of the O&G operations MonitoringAssured Can undertake required surveys.

8. CCS– Scope in up/mid stream O&G sector contd. The scope of CCS projects are limited except for an assured source The scope of CCS projects are limited except for an assured source  Possible sources  Plants processing sour gas  Flue gas  Tie up with other sector

9. Processes involved Source identification Source identification CO 2 capture CO 2 capture Reservoir analysis Reservoir analysis Transportation to sink Transportation to sink Injection Injection Monitoring Monitoring

10. CCS– Monitoring and safety Reservoir monitoring to check leakage Reservoir monitoring to check leakage  Baseline survey prior to injection  Stimulated reservoir analysis backed up by regular and reliable monitoring  Multi formation monitoring scheme is the latest recommendation ( ground water, seismic, PVT, logging etc) Surface facility monitoring to check corrosion/scaling Surface facility monitoring to check corrosion/scaling

11. CCS– Monitoring and safety contd. Safety issues: Safety issues:  Safe containment of CO 2 underground over the project life.  There should be no need to re demonstrate in the future generation about safety aspect of a CCS site.  No storage site should be closed unless long term safety assured.  A proper regulatory framework to be in place.

12. CCS– possibility in ONGC Limited scope ONGC– an up and mid stream O&G company ONGC– an up and mid stream O&G company Most reservoirs are sweet oil bearing Most reservoirs are sweet oil bearingPossibility Offshore reservoirs as they have sour gas Offshore reservoirs as they have sour gas Flue gas from in situ combustion at Mehsana Asset Flue gas from in situ combustion at Mehsana Asset

13. CCS– ONGC experience Approved projects: Approved projects: –CCS for EOR ( Hazira/Ankleshwar) Potential project Potential project –CCS for disposal of acid gas (Uran) –Flue gas recovery (Mehsana)

14. CCS for EOR ( Hazira/Ankleshwar) Capture of CO2 from Hazira plant Capture of CO2 from Hazira plant  Source– Sour gas from B&S field of Mumbai Offshore(Hazira Plant processes 40 MMSCMD of sour gas) Transport it to the mature (depleted) onshore reservoir of Ankleshwar Transport it to the mature (depleted) onshore reservoir of Ankleshwar Inject it at S3+4 sand zones for enhanced recovery of crude from the reservoir. Inject it at S3+4 sand zones for enhanced recovery of crude from the reservoir.

15. CCS for EOR ( Hazira/Ankleshwar) contd Project potential Project potential CO2 EOR is feasible by injecting CO2 in the major oil bearing sand zone under immiscible conditions. CO2 EOR is feasible by injecting CO2 in the major oil bearing sand zone under immiscible conditions. incremental oil recovery over the base case scenario incremental oil recovery over the base case scenario  6.9% of the in high case,  4.5% of OIIP in most likely case  2.25% of OIIP in low case. Project life– 30-35 years Project life– 30-35 years Net gain of 3.13 MMt Net gain of 3.13 MMt

16. CCS for EOR ( Hazira/Ankleshwar) contd Processes involved Processes involved  Sweetening of sour gas by amine absorption  Acid gas is the byproduct (97% CO 2 )  Selective removal of H 2 S from acid gas by selective regenerative amine ( modified LOCAT Sulphur removal)  Dehydration and compression of CO2 at Hazira.  Transportation to Ankleshwar through 12” dia 75 Km pipeline (new pipeline with anti corrosive material)  Recompression of CO2 to 160Kg/cm2 for attaining super critical stage.

17. CCS for EOR ( Hazira/Ankleshwar) contd Processes involved Processes involved –Injection of CO2 in 12 injector wells.( new wells required with anti corrosive casing) –Production of oil from 67 producer wells (new wells). ( Expected peak production rate is 770M3/day). –Monitoring for leakage, safety aspects, scaling, sand problems, corrosion

18. CCS for EOR ( Hazira/Ankleshwar) contd Status Status Completed activities: Completed activities:  CO 2 Capture and dehydration studied: Can be operationalised  Reservoir analysis Under completion: Under completion:  Transportation of gas  Establishing surface facilities

19. CCS in Uran Source Source Acid gas obtained from sweetening of the sour gas from MH and N&H Assets processed at Uran plant. Acid gas obtained from sweetening of the sour gas from MH and N&H Assets processed at Uran plant. Issues : Issues : Absence of a nearby onshore reservoir, Absence of a nearby onshore reservoir, Low quantity of CO 2 ( Uran only generates 0.2 MMSCMD of acid gas, too low to consider offshore sequestration) Low quantity of CO 2 ( Uran only generates 0.2 MMSCMD of acid gas, too low to consider offshore sequestration) Best available alternatives mulled: Best available alternatives mulled: Supply of CO 2 to nearby fertiliser plant to manufacture urea. ( there will be 25% increase in urea production). Supply of CO 2 to nearby fertiliser plant to manufacture urea. ( there will be 25% increase in urea production).

20. Flue gas recovery at Mehsana Source: Source: Flue gas from in situ combustion at the Santhal and Balol field Flue Gas Composition.doc Flue gas from in situ combustion at the Santhal and Balol field Flue Gas Composition.docFlue Gas Composition.docFlue Gas Composition.doc Issues: Issues: Removal of Nitrogen Removal of Nitrogen Very low quantity of CO 2. Very low quantity of CO 2. Best available alternative: Best available alternative: Yet to be found. Yet to be found.

21. CCS– Its future in India India India is a member of CSLF Undertakes Undertakes R&D on CCS as per CSLF. Industrial Industrial synergy is imperative for better CCS  Up/Mid  Up/Mid stream O&G sector to hire/provide sinks  Downstream  Downstream O&G/ power sector to store/provide source. Excellent Excellent opportunity for up/mid stream O&G sector

22. CCS and synergy– future of sustainable development Thank you